How FD interest is calculated
Maturity = P × (1 + r ÷ k)k × t, where P is the deposit, r the yearly rate, k the number of compounding periods per year (4 for quarterly) and t the time in years. Most Indian banks and the post office compound quarterly.
Good to know
- Senior citizens usually get 0.25–0.5% extra; enter that higher rate.
- Banks deduct TDS at 10% if yearly FD interest crosses the threshold (₹50,000 for most people, higher for senior citizens). Submit Form 15G/15H if your income is below the taxable limit.
- Breaking an FD early normally costs 0.5–1% of the rate as penalty.
Common questions
Is the interest shown after tax?
No. FD interest is added to your income and taxed at your slab rate.
What about monthly payout FDs?
Those pay simple interest monthly; choose "Simple interest" for a close estimate.